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HomeMy WebLinkAboutMinutes 10-25-2001 Special , CITY COUNCIL SPECIAL MEETING I CITY HALL ANNEX 1 I 111 Polk Avenue, Cape Canaveral, Florida THURSDAY October 25, 2001 5:30 P.M. MINUTES 1 I Roll Cali: 1 Council Members Present: I Burt Bruns I Mayor Pro Tem Buzz Petsos Mayor Rocky Randels 9 Larry Weber Council Members Absent: Richard Treverton 1 , Others Present: Bennett Boucher, City Manager Mark McQuagge, Assistant City Attorney ' 4 Susan Stills, City Clerk Andrea Bowers, City Treasurer Health Insurance Review Committee Members: Kim McIntire, Administrative Assistant /City Manager Marianne Huston, Administrative Assistant/Public Works 4 Kenneth Veenstra, Plant Operator I Barbara Dasno, Laboratory Technician 1 3 i i x 1. Motion to Award: Request for Proposal No. 01 -10; Group Health Benefits; 1 For Medical, Dental, Vision and Group Life Insurance. A motion was made by Mayor Pro Tem Petsos and seconded by Mr. Bruns to approve the employee's choice of the Blue Cross/ Blue Shield health plan and the dental, vision and life benefits options with the increase cost split equally between the employer and the employees. Mr. Boucher stated that his memo outlined the Health Review Committees recommendation and he deferred to Ms. Debra Amicarelli from Florida Benefits Inc. to review the analysis. Ms. Amicarelli outlined the plans that were reviewed 1 and explained why the AETMA Health plan, although lower in cost, was not considered to due its limited hospital network. She also explained why Health First was not considered in that a medical underwrite is required which might increase its cost on enrollment by 15 percent. Ms. Amicarelli said that Blue Cross /Blue Shield prices would not change as long as the employee census did not change. The Blue Cross /Blue 3 i I City of Cape Canaveral, Florida City Council Special Meeting October 25, 2001 1 Page 2 I Shield plan also has a wider hospital network. Mayor Randels clarified that a 16 percent 1 1 increase would occur immediately with approval of the Blue Cross plan. Ms. Amicarelli ; expressed that health insurance has historically increased however 16 percent is comparable to trend. Ms. Amicarelli explained the hospital co -pay system within the HMO plan. She stated that the health p lan rates for Blue Cross/ Blue Shield are locked in for a one -year period 1 bas on the current census. Mr. Bruns stated for clarification that the rate per employee in the proposed plan is $295.68 per employee and asked if the employees were willing to make a contribution to the cost. Council members reiterated that the I. direction was for the City to pay no more than $128,000 with any amount over that paid by the employees. Mr. Boucher stated that the proposed rate would cost $127,734 1 annually per employee. He also stated that the City paid $109,000 last year per employee excluding dependent costs. Mr. Bruns restated that the previous consensus was to have the employees share in the cost of the health care plan. Ms. Dasno expressed that the employees agreed to transition from a PPO plan to an HMO plan in order to provide a savings for the City and in order for the employees not to make a contribution. Ms. Amicarelli asked how the health care costs were calculated and if funds were budgeted for increased costs. Mayor Randels explained that taxes remained the same from last year to this year. Ms. Bowers stated that increases were factored in for health care. Mayor Pro Tem Petsos replied however that the increase was included with the plan to decrease later. Mr. Bruns asked Ms. Amicarelli how many of her clients pay 100 percent for their employee's health care. Ms. Amicarelli replied that employers are now passing some of I the health care cost to the employee. Mr. Veenstra asked what is a realistic budgeted increase amount for health insurance. Ms. Amicarelli replied that 20 percent is a realistic increase amount. Mayor Randels commented that over time the burden of cost is shifting from the employer to the employee. Mayor Randels summarized that Council 1 had tasked the City Manager to discover what the employee were willing to pay for or to reduce the benefits. Mr. Boucher replied that the committee reviewed comparable plans and presented a recommendation to the Council. Ms. Amicarelli clarified that the Blue Cross rates would remain the same if the census did not change. The employees present expressed concern with Council's proposal to reduce health care benefits and then ask employees to make a contribution as well. Mayor Pro Tem Petsos expressed that he would like to see employees contribute to their health care. Mayor Pro Tem Petsos also said that if the Council were to consider the Blue Cross/ Blue Shield HMO 1 $250 co -pay plan, an $8 or $9 contribution from the employees was not an unreasonable request. Mayor Randels suggested a defined contribution to buy health 1 care. However, Ms. Amicarelli informed that defined contribution would penalize 1 i individuals with health issues by denying them coverage. Ms. Amicarelli stated that there are savings in the proposed dental and group life plans, however the savings are not enough to balance the increase in the medical costs. 7 ,f I t a 5 r 1 i City of Cape Canaveral, Florida City Council Special Meeting October 25, 2001 Page 3 1 Mr. Weber asked for the total cost of medical, dental, vision and life insurance in the proposed plan. Ms. Amicarelli responded $152,187 annually. Mr. Weber asked for the total of the current health care costs to which Ms. Amicarelli responded $137, 381. The break down is $115, 516 on the medical, $8,918 on the dental, $2,478 on the vision and $10, 469 on the two life insurance policies. Ms. Amicarelli reported the difference between previous costs and proposed as $16, 290 with the biggest increase in the A medical costs. Ms. Amicarelli indicated the incurred savings with the recommended dental and group life plans. Mr. Weber queried why there are two life insurance policies. 1 Ms. Bowers explained that there is a one -time the amount of annual salary policy and a 1 flat $25,000 policy associated with the pension plan. Mayor Pro Tem Petsos reiterated that the overall increase is still $16,290. 1 Mr. Weber queried the importance of the life insurance coverage and suggested that the employees forego that coverage in order to lower the overall costs. Ms. Dasno asked j how much was budgeted this year for an increase in health insurance. Ms. Bowers 1 replied up to 10 percent was budgeted. Mr. Bruns suggested an increase in co-pay or an increase in the deductible. Mr. Boucher expressed that the committee gave a recommendation and the decision is for the Council to either reduce benefits for require an out -of- pocket contribution. Ms. Bowers suggest a shared split of half of the increased amount between the City and the employee. Mayor Pro Tem Petsos concurred with the concept of sharing the cost of $8,145 that is half of the overall increase amount. Mr. Boucher calculated $9.56 as the bi- weekly payroll contribution required from each ! employee. Mr. Veenstra expressed that the employees recommended a plan that was 1 below the percentage of increase that they were told and a contribution was still under 1 consideration. Mayor Pro Tem Petsos expressed that a transition into the health care 1 with the employee's paying a portion is a start toward facing the impending trend of increased cost. Mr. Boucher suggested a flat contribution. Mayor Pro Tem Petsos I retained his position that Mr. Boucher convey to the employees the Council's desire to contribute a portion toward health care coverage. Council members by a majority also directed Mr. Boucher to seek a counter offer in the form of reduced benefits from the 1 employees. City Council will hold a special meeting in the following week to discuss this 1 issue further. The vote on the motion carried 4 -0 as follows: Mr. Bruns, For; Mayor Pro Tem Petsos, For; Mayor Randels, For and Mr. Weber, For. 1 1 2. Motion to Adopt: Ordinance No 04 -2001; An Emergency Ordinance of the 1 City of Cape Canaveral, Brevard County. Florida, Suspending certain Limitations in Section 94 -76, Temporary On- Premises Signs. A motion was made by Mayor Pro Tem Petsos and seconded by Mr. Weber to adopt Ordinance No. 04 -2001; an Emergency Ordinance of the City of Cape Canaveral, 1 Brevard County, Florida, Suspending Certain Limitations in Section 94 -76, Temporary 1 On- Premises Signs. Mr. Bruns asked why the Council needed to adopt an ordinance if the City Manager was directed to approve these sign permits on a case -by -case basis. , Mayor Randels stated that this ordinance addresses the time limits and the permit fee. I Mr. Boucher related what Council planned to approve to the business community. j 1 i 1 I City of Cape Canaveral, Florida City Council Special Meeting October 25, 2001 Page 4 1„ 1 , r Attorney McQuagge stated that this ordinance would clarify what is required by ordinance. Mr. Mike Gulick said that he would like to have clear directives on his sign products. Mayor Randels read the definition of a temporary sign. Mayor Randels stated the time limit on the emergency ordinance as January 31, 2002. The vote on the motion f carried 4-0 as follows: Mr. Bruns, For; Mayor Pro Tem Petsos, For; Mayor Randels, For and Mr. Weber, For. Mayor Pro Tem Petsos referred to an invitation from Cape Canaveral Hospital that the Mayor on November 13 Mayor Pro Tem Petsos requested that Mayor Randels reiterate what the Council had previously agreed on with the hospital. The meeting ghwyned at 7:07 P.M. I --- tg v-7. ;';' - c I I . <, sC_ •C:c.„.•Qe___ I v -5 . -,--, i; z„,.._.- L, : - _ , Rocky Randels, MAYOR , , - 1 - . --;14g-12 , .I 1°' t, I SusanNli, ...4A"' k .,„„....„ E , [ 1 P 1 [ [ [ I f i V 1 I 1 , 1 [ ! i / 1 i . V , v i [ [ 1 :